Cramer's Stop Trading! It's Not Hard to Destroy the Banking System (3/9/09)

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Includes: MO, MRK, SGP
by: Miriam Metzinger

Stocks discussed on the Jim Cramer's Stop Trading TV Program, March 9, 2009.

Schering-Plough (SGP), Merck (NYSE:MRK), Altria (NYSE:MO)

Looking at the S&P 100, Cramer noted only 9 of those stocks are up for the year so far, and even then, none of the stocks have increased more than 5%. Cramer called this a "monumental decline" of 91% of the index. The fact that the S&P100 is comprised of large cap stocks which are popular holdings for retirement portfolios has huge implications for the average American.

The few stocks that are up do not seem to have sustainable gains: Schering-Plough and Merck jumped on news of takeovers, and Altria had nowhere to go but north after getting pummeled. Cramer questioned Obama's judgment to implement tax increases and alter mortgage deductions when conditions are so dire.

While Cramer admitted he voted for Obama, and thought a tax increase on the wealthy was in order after a recovery, he added: “I just think it’s ill-advised to do it now because I think a second Great Depression is on the table. I think that’s what the averages are saying. I think you could destroy the banking system in the three weeks we have between now and when [Treasury Secretary] Geithner speaks."

“It’s not hard to destroy the banking system,” Cramer said.

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